Anyone can apply for an Islamic credit card and Takaful insurance; you don’t necessarily have to be Muslim.
Islamic credit cards are Syariah compliant, but what does that really mean in the context of banking? Well, it is just like a conventional credit card but with additional features.
In essence, Islamic banking adheres to the principles of Syariah law as defined in the Quran, Hadith, and Sunnah. Islamic banking differs from conventional banking in that instead of loaning money to a client, it will purchase ahead and resell it to the client at a higher price. Its business purpose is to make profits that are in accordance with the principles of fiqh Al-Mua’malat (rules on transactions).
Islamic credit cards offer Takaful coverage to its client. Takaful is a form of Islamic insurance that protects you against incidents of damage and loss. It is diligently monitored through the Islamic Financial Services 2013 Act.
Anyone can apply for an Islamic credit card and Takaful insurance; you don’t necessarily have to be Muslim. It is simply a product created specifically to cater to the needs of the Muslim people, but it is by no means exclusive. There are plenty of good ones to choose from, i.e RHB, Maybank, CIMB, etc.
Some of the Islamic credit card options by RHB Malaysia
Some Islamic banks compel you to sign up for Takaful insurance if you want their credit card, which isn’t a bad thing since the client will be covered in unfortunate cases of permanent disability or death. Furthermore, immediate family members will not be affected by any of the outstanding balance.
Every Muslim who fulfils a certain criteria is obliged to pay zakat, which is the third and compulsory pillar of Islam. Those who are eligible pay a fixed amount that is proportionate to their income and that fund is directed to relief efforts for the poor and needy. Having an Islamic credit card means that you will not have to physically go to a zakat centre to make your contribution, which saves you time.